In 2004 the Basel Committee published an extensive revision of the capital charges whichcreates more risk sensitive capital requirements for banks. The New Accord called “InternationalConvergence of Capital Measurement and Capital Standard” provides in its first pillarfor a finer measurement...

Within the last decade, credit risk management of financial institutions has been subject to major changes due to the development of the credit derivatives market. In the past, financial institutions merely had the possibility to manage their credit portfolio by either approving or refusing a...

Investment decisions of cooperative banks are very restricted to their risk capacity. A well defined and organised Risk Management Process supports those investment activities and assists to achieve a balanced situation between risk and return.Several ways can be chosen to allocate risk capital....

The aim of portfolio insurance strategies is to put a floor on the value of a stock portfolio byprogressively selling stocks and buy safe, short-term debt securities as stock prices fall. Thispaper analyzes the current static and dynamic methods in use and explains their pros andcons.

This paper analyzes the current use of incentive-fee-concepts for mutual funds inGermany. Following an empirical analysis about the relevance of these methods,the different methods of calculation and the influence of different parameters aredescribed. Further on it explains the impacts of...

This paper deals with the problem of interpolation of discount factors betweentime buckets. The problem occurs when price and interest rate data of a marketsegment are assigned to discrete time buckets. A simple criterion is developed inorder to identify arbitrage-free robust interpolation...

China’s rise drives a growing impact of China on economics. So far, this mainly works via theforce of example, but there is also an emerging role of Chinese thinking in economics. Thispaper raises the question how far Chinese perspectives can affect certain foundational principlesin economics,...

This paper studies the effects that heterogeneous multiple bank financing hason a firm’s risk- and information-policy, particularly with respect to credit rene-gotiation efficiency. We find that a significant, yet limited, degree of relationshiplending enables firms with high asset specificity...

With the development of new internet technologies new security problems arise. Thus, it isimportant to consider security aspects during the complete development process of a web application.Every participant of such a process should have the appropriate knowledge. Classicallearning methods are...